Entertainment Sites Cough Up Cash To Settle Popup Ransom Scam

Online video downloaders got a lot more than a skin flick or a Gumby episode. Instead, they received a computer infection and a ransom note. On Thursday, the purveyors of those entertainment sites — movieland.com, moviepass.tv popcorn.net and others — agreed to pay $500,000 to resolve an unfair business practice lawsuit with the Federal Trade […]

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Online video downloaders got a lot more than a skin flick or a Gumby episode. Instead, they received a computer infection and a ransom note.

On Thursday, the purveyors of those entertainment sites -- movieland.com, moviepass.tv popcorn.net and others -- agreed to pay $500,000 to resolve an unfair business practice lawsuit with the Federal Trade Commission.

The sites were accused of shaking down customers by anonymously uploading pop-up software onto their computers. The ads lasted as long as a minute and could not be clicked away.

The popup ads demanded as much as $99 for removal. They said users had signed up for a three-day "free trial" to use the sites' downloading services, and had not cancelled their "license" before the trial period ended.

Trying to remove the software with the Windows' add/remove function on the control panel often was of no use. Instead, users got redirected to another page saying they had to pay the fee to block the ads, which also included music, the FTC said. If there was a "successful" uninstall, the software routinely installed itself, the government said.

According to the commission, duped users paid the fee or even hired computer technicians to remove the popup-producing software. The settlement agreement requires that the sites refrain from launching such deceptive software into their customers' computers.

The FTC said it would notify customers about how they can share in the $500,000 fine.

Digital Enterprises of California operates movieland.com; Triumphant Videos of California operates popcorn.net and Binary Source, of California, runs moviepass.tv, the government said.

Ransom note courtesey of Josh Uarey